_edited_edited.png)
Markets Update: APAC Stocks Climb, Taking Cues from US Tech Rally; Eyes on European Open and Data Releases.
Economic Calendar
Global Markets Roundup: 09 Jan 2024
Asian equities rallied on Tuesday, buoyed by strong gains on Wall Street, particularly in the technology sector. The optimism spilled over into European markets, with futures pointing to a higher open for the Euro Stoxx 50. Policy Debate Heats Up: Federal Reserve officials offered contrasting views on the current monetary policy stance. Michelle Bowman argued that current measures seem sufficiently restrictive, while Raphael Bostic reiterated his preference for two 25-basis-point rate cuts this year. These divergent opinions kept a lid on major currency pairs, with the DXY remaining near 102 and EUR/USD hovering around 1.0950. The Japanese yen emerged as the slight outperformer among G10 currencies. Commodity Markets Find Stability: Crude oil futures traded sideways after the previous day's sharp decline, offering a reprieve for energy traders. WTI, which plummeted nearly 4% on Monday, saw its losses contained.
ASX 200 Soars, Tech Booms: Australia's benchmark ASX 200 surged above 7,500, its highest in over a year, propelled by tech and consumer sector gains following a decline in bond yields. Nikkei Hits 34-Year High: Japan's Nikkei 225 continued its bull run, climbing to just shy of 34,000 before encountering resistance. The index closed at its highest level since March 1990, marking a remarkable return to form. China's Initial Surge Fades: Hong Kong's Hang Seng and the mainland's Shanghai Composite enjoyed early gains on the back of optimism and recent hints from the People's Bank of China (PBoC) about potential credit-boosting measures like reduced reserve requirements. However, the rally fizzled out later in the session as the PBoC drained liquidity and Chinese oil majors came under pressure from falling oil prices.
Foreign Exchange (FX):
Dollar Holds Ground: Despite a rally in equities and softer yields, the US Dollar (USD) remained firm above the 102.00 level against a basket of major currencies.
Euro Edges Higher: EUR/USD initially capitalized on USD weakness and support at 1.0950, but gains faded later in the session.
Pound Sterling Steady:Â GBP/USD ended flat after testing the previous day's highs and staying above 1.2700.
Yen Retreats: USD/JPY dipped below 144.00 pressured by yield differentials and a lackluster USD, despite mixed economic data from Japan.
AUD and NZD Muted: Australian Dollar (AUD) and New Zealand Dollar (NZD) initially strengthened on positive risk sentiment and upbeat Australian data, but gains were later reversed.
China's Yuan:Â CNY remained stable with the People's Bank of China (PBoC) setting the USD/CNY midpoint at 7.1010.
Fixed Income:
US Treasuries Retreat: Following yesterday's advance on weaker energy prices and inflation expectations, 10-year US Treasury futures (UST) pulled back.
German Bunds Slip:Â Bund futures declined after encountering resistance above 136.00.
Japanese Government Bonds Inch Up:Â 10-year Japanese Government Bond (JGB) futures saw modest gains due to mixed data and the Bank of Japan's presence in the market.
Commodities:
Oil Rangebound: Crude oil futures traded within a narrow range, offering some relief after the previous day's sharp selloff on Saudi's oil price cuts and demand concerns.
Refinery Disruption: Motiva's Port Arthur refinery in Texas, a major US oil processing facility, experienced a temporary shutdown.
Gold Holds Steady:Â Spot gold remained flat as a weaker USD balanced the lack of safe-haven demand.
Copper Supported: Copper futures benefited from the improved market mood, although gains were limited by China's sluggish performance.
Data and Speeches Take Center Stage: The economic calendar on Tuesday is chock-full of key data releases and central bank speeches. German Industrial Output, US International Trade, Canadian Building Permits, and US RCM/TIPP Economic Optimism are among the highlights. Additionally, Japanese Labour Wages will be under the microscope, the Fed will release minutes from its recent discount rate meeting, and ECB's Francois Villeroy and Fed's Michael Barr are scheduled to deliver speeches. These events have the potential to move markets, so investors will be glued to their screens throughout the day.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments